About Botswana and Key Financial Statistics

About Botswana and Key Financial Statistics

Overview of Economy:

Botswana's diamond dependent economy has maintained one of the world's highest economic growth rates since independence in 1966. However, economic growth was negative in 2009, with the industrial sector shrinking by 30%, after the global crisis reduced demand for Botswana's diamonds. Although the economy recovered in 2010-12, GDP growth slowed in 2012-14. Through fiscal discipline and sound management, Botswana transformed itself from one of the poorest countries in the world to a middle-income country with a per capita GDP of $16,600 in 2014. Two major investment services rank Botswana as the best credit risk in Africa. Diamond mining has fueled much of the expansion and currently accounts for more than one-third of GDP, 70-80% of export earnings, and about one-third of the government's revenues. Botswana's heavy reliance on a single luxury export was a critical factor in the sharp economic contraction of 2009. Tourism, financial services, subsistence farming, and cattle raising are other key sectors. According to official government statistics, unemployment reached 17.8% in 2009, but unofficial estimates run much higher. The prevalence of HIV/AIDS is second highest in the world and threatens Botswana's impressive economic gains. An expected leveling off in diamond production within the next 10-15 years overshadows long-term prospects. A major international diamond company signed a 10-year deal with Botswana in 2012 to move its rough stone sorting and trading division from London to Gaborone by the end of 2013. The move has supported the development of Botswana's nascent downstream diamond industry.

Gross Domestic Product (In USD):

$35.87 billion (2014 est.)

$34.35 billion (2013 est.)

$31.42 billion (2012 est.)

Composition of Gross Domestic Product:

Composition of Labor Force by Occupation:

% Agriculture: NA%

% Industry: NA%

% Services: NA%

Per Capita Income:

$17,000 (2014 est.)

$16,300 (2013 est.)

$14,900 (2012 est.)

Exports:

$8.516 billion (2014 est.)

$7.603 billion (2013 est.)

Key Export Commodities:

diamonds, copper, nickel, soda ash, meat, textiles

Export Partners:

Imports:

$7.989 billion (2014 est.)

$7.362 billion (2013 est.)

Key Import Commodities:

oodstuffs, machinery, electrical goods, transport equipment, textiles, fuel and petroleum products, wood and paper products, metal and metal products

Import Partners:

Inflation Rate (Consumer Price Index):

3.9% (2014 est.)

5.8% (2013 est.)

Exchange Rate to USD:

pulas (BWP) per US dollar -

8.9761 (2014 est.)

8.9761 (2013 est.)

7.62 (2012 est.)

6.8382 (2011 est.)

6.7936 (2010 est.)

Unemployment Rate:

17.8% (2009 est.)

7.5% (2007 est.)

S&P Rating:

Standard & Poor's Ratings:

• • AAA: The best quality borrowers, reliable and stable

  • AA: Quality borrowers, a bit higher risk than AAA

  • A: Economic situation can affect finance

  • BBB: Medium class borrowers, which are satisfactory at the moment

  • BB: More prone to changes in the economy

  • B: Financial situation varies noticeably

  • CCC: An obligor rated currently vulnerable, and is dependent upon favorable business, financial, and economic conditions to meet its financial commitments.

Ref 2012-2014: CIA World Factbook, Wikipedia, PWC, EY, Standard & Poors ratings